Main trading issues for the Hungarian market
Felsmann identifies four important challenges for traders on the Hungarian market.
First of all (and this does not apply to Hungary only), traders are experiencing some issues with the consequences of the implementation of the Winter package. Article 12 enables consumers to switch suppliers at any time without paying any fees. For contracts with large industrial users, this directive has big consequences for traders.
“We need a better coordination between all market participants in order to overcome this”, says Felsmann. “Not only on a European level between EFET and the European Commission, TSOs and DSOs, but also on a national level, the traders' associations have a big role to play.”
Improving this coordination also applies to the second challenge, which is the integration of renewable energy sources and how to implement the new balancing network code. A dual imbalance price eventually has consequences for the energy costs for consumers.
“Thirdly”, Felsmann says, “in Hungary, we have a huge amount of electricity import. In the free market segment, the import accounts for 50% of the total! And last but not least the restructuring that is happening amongst the various market participants at the moment in terms of mergers and acquisitions also has its effects on the market in Hungary, where there is strong competition in retail markets. Currently, the state as a direct investor in various utilities owns a lot of the domestic market.”
What can we expect in the Hungarian session at ETCSEE?
“We are experiencing very interesting times at the moment”, Felsmann says. “It goes without saying that all challenges I mentioned will be discussed during the Hungarian session at the ETCSEE conference. We will discuss pricing issues, bundled markets and, above all, gain an understanding of the motivators for the current volatility.”
“By attending the ETCSEE conference, we (the Hungarian Energy Traders’ Association) can deepen our international network. Most of our members operate multi-regional, so ETCSEE really helps to bring everyone together. As I mentioned before, a better coordination between the various market stakeholders is key to overcome many of the current challenges and ETCSEE is a great place to bring all stakeholders together.”More about the Hungarian session during ETCSEE